comparisons between two financial companies

1. Introduction of AMUL
Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in
India. It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative
Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million
milk producers in Gujarat, India. It is based in Anand town of Gujarat and has been a sterling
example of a co-operative organization's success in the long term. The Amul Pattern has
established itself as a uniquely appropriate model for rural development. Amul has spurred the
White Revolution of India, which has made India the largest producer of milk and milk
products in the world. It is also the world's biggest vegetarian cheese brand .
In the year 1946 the first milk union was established. This union was started with 250 liters of milk
per day. In the year 1955 AMUL was established. In the year 1946 the union was known as
KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union
selected the brand name AMUL in 1955. It is a brand name managed by an apex cooperative
organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is
jointly owned by some 2.6 million milk producers in Gujarat, India. It is based in Anand town
of Gujarat and has been a sterling example of a co-operative organization's success in the long
term. The Amul Pattern has established itself as a uniquely appropriate model for rural
development. Amul has spurred the White Revolution of India, which has made India the
largest producer of milk and milk products in the world. It is also the world's biggest
vegetarian cheese brand .
The brand name Amul means “AMULYA”. This word derived form the Sanskrit word
“AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested the
brand name “AMUL”. Amul products have been in use in millions of homes since 1946. Amul
Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul
Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food
1

2. brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like
of the high-quality products sold at reasonable prices, of the genesis of a vast co-operative network,
of the triumph of indigenous technology, of the marketing savvy of a farmers' organization. And
have a proven model for dairy development (Generally known as “ANAND PATTERN”).
GCMMF
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products
marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which
aims to provide remunerative returns to the farmers and also serve the interest of consumers by
providing quality products which are good value for money.
Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice cream,
cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. In January 2006,
Amul plans to launch India's first sports drink Stamina, which will be competing with Coca
Cola's Powerade and PepsiCo's Gatorade .
Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual
turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer members
with milk collection average of 10.16 million litres per day. Besides India, Amul has entered
overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore,
Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had
not succeeded, but now it has fresh plans of flooding the Japanese markets .Other potential
markets being considered include Sri Lanka.
Dr Verghese Kurien, former chairman of the GCMMF, is recognised as the man behind the success
of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was elected
chairman of GCMMF.
2

3. ACHIEVEMENT
Amul :Asia s largest dairy co-operative was created way back in1946 to make the milk producer‟
self-reliant and conduct milk- business with pride. Amul has always been the trend setter in
bringing and adapting the most modern technology to door steps to rural farmers.
Amul created history in following areas:
a)First self motivated and autonomous farmers organization comprising of more than 5000000‟
marginal milk producers of Kaira District.
b) Created Dairy co-operatives at village level functioning with milk collection centres owned by
them.
c) Computerized milk collection system with electronic scale and computerized accounting system.
d)The first and only organization in world to get ISO 9000 standard for its farmers co-operatives.
e)First to produce milk from powder from surplus milk.
Amul is the live example of how co-operation amongst the poor marginal farmers can provide means
for the socio-economic development of the under privileged marginal farmers.
Amul in abroad:
Amul is going places. Literally. After having established its presence in China, Mauritius and Hong
Kong, Gujarat Cooperative Milk Marketing Federation (GCMMF), India s largest milk‟
cooperative, is waiting to flood the Japanese market.
Then, GCMMF is also looking at Sri Lanka as one of its next export destinations. Amul products are
already available on shelves across several countries, including the US, China, Australia, West
Asian countries and Africa.
GCMMF recorded a turnover of Rs 2,922 crore last fiscal. Its products include pouch milk, ultra heat
treated (UHT) milk, ice-cream, butter, cheese and buttermilk.
3

4. PEOPLE POWER: AMUL'S SECRET OF SUCCESS
The system succeeded mainly because it provides an assured market at remunerative prices for
producers' milk besides acting as a channel to market the production enhancement package. What's
more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to
high quality milk and milk products. Contrary to the traditional system, when the profit of the
business was cornered by the middlemen, the system ensured that the profit goes to the participants
for their socio-economic upliftment and common good.
Looking back on the path traversed by Amul, the following features make it a pattern and model for
emulation elsewhere.
The Union looks after policy formulation, processing and marketing of milk, provision of technical
inputs to enhance milk yield of animals, the artificial insemination service, veterinary care, better
feeds and the like - all through the village societies. Basically the union and cooperation of people
brought Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which suggest
THE TASTE OF INDIA.Amul sells 35 million litres of ice-cream valued at more than Rs 200 crore
out of a total branded ice-cream market of 100 million litres worth Rs 600 crore. The Amul ice
cream business is currently growing at the rate of more than 20 percent
Members: 13 district cooperative milk producers'
Union
No. of Producer Members: 2.6 million
No. of Village Societies: 12,792
Total Milk handling capacity: 10.16 million litres per day
Milk collection (Total - 2006-07): 2.38 billion litres
Milk collection (Daily Average 2006-
07):
6.5 million litres
Milk Drying Capacity: 594 Mts. per day
Cattlefeed manufacturing Capacity: 2640 Mts per day
Sales Turnover Rs (million) US $ (in million)
1994-95 11140 355
1995-96 13790 400
1996-97 15540 450
4

5. 1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850
2006-07 42778 1050
BOARD MEMBERS
Shri Ramsinh Prabhatsinh Parmar Chairman
Shri Rajendrasinh Dhirsinh
Parmar
Vice-Chairman
Shri Dhirubhai Amarsinh Zala Director
Smt. Mansinh Kohyabhai Chauhan Director
Shri Maganbhai Gokalbhai Zala Director
Shri Shivabhai Mahijibhai Parmar Director
Shri Pravinsinh Fulsinh Solanki Director
5

6. Shri Chandubhai Madhubhai
Parmar
Director
Shri Bhaijibhai Amarsinh Zala Director
Shri Bipinbhai Manishankar Joshi Director
Smt. Sarayuben Bharatbhai Patel Director
Shri Ranjitbhai Kantibhai Patel Director
Shri B. M. Vyas
Managing Director
G.C.M.M.F
Shri Deepak Dalal District Registrar
Shri Rahul Kumar Managing Director
AMUL is all set to storm the Ice cream market with a new range of probiotic ice cream aimed at the
total health conscious.
Proboitic means “ for life”. Probitics are defined as “live beneficial culture administered in adequate
amounts which confer a beneficial health effect on the host”.
The human large intestine is a active site of no of microorganism known as gut microflora. In a
healthy person it a balance of a number of beneficial a bacteria. The gut microflora actively play a
role in health maintenance by modulation of immune system, protection from pathogens and virus
invasion through gastrointestinal tract. They also aid in food digestion. A part from these beneficial
6

7. bacteria also synthesize some vitamins in gut. Our food habit, living habit, medication to cure
disease,stress & strain, age etc can cause the disturbance in balance of gut miroflora. The disturbed
gut microflora can create a chance for pathogens and viral invasion.
The products are:
•Amul ProLife (Probiotic Wellness Ice Cream)
•Amul Sugar Free (Probiotic Diabetic Delight) Amul ProLife (Probiotic Wellness Ice Cream)
Probiotics are a live, beneficial culture, which when administered in adequate amounts, confer a
beneficial health effect on the host. They help in digestion, improve the immune system, make the
bones stronger, fight against allergic reactions and are effective in controlling travellers’ diarrhoea.
They also help in the prevention of colon cancer and enhance brain activity. The Amul ProLife
Probiotic Wellness Ice Cream has all these benefits. How is Amul ProLife ice cream beneficial?
Probiotic ice cream is enriched with live beneficial cultures to help your overall.
Executive VP – Inflight Services, said, “The improvements were prompted by surveys conducted
among passengers, assessing their needs and ratings of our inflight products. The new products were
developed in collaboration with leading gastronomic experts. We will be offering better quality
meals and we have modernised the design of our trays, crockery and cutlery.” World Business Class
World Business Class passengers travelling on KLM’s ex-India flights shall enjoy exquisitely
prepared three-course Indian and Western meals. Passengers will be able to choose from new Indian
menus developed in collaboration with renowned London-based Chef Andy Varma of the Vama
Group and owner of the famous restaurant, The Indian Room in London. World Business Class
passengers on all KLM flights ex-Amsterdam will be treated to the internationally renowned cuisine
of Jacques and Laurent Pourcel from December 1, 2006 till the onset of summer 2007. The Pourcel
brothers, who run top class restaurants in many countries, have produced recipes for the hors
d’oeuvre, three main courses, and dessert. Intercontinental Economy Class On all flights to and from
India, KLM’s Economy Class passengers will be offered a larger choice of Indian and Western
cuisines, as a full menu and as accompaniments. Special attention will be given to local preferences.
To complement the new meals, the trays, crockery and cutlery have been redesigned to improve
meal presentation. Also, the current hot snack served shortly after the post midnight take-off from
India will be supplemented with a snack box having a choice of three light snacks. The new Indian
menus in ex- Amsterdam Economy Class have also been. well-being and health.
Following are the benefits of having Probiotic ice cream:
7

8. •It improves the gut micro flora
•Helps in digestion
•Improves the mineral and vitamin absorptions from diet
•Produces anti-microbial substances, which help in fighting against pathogens
•Produces Vitamin B
•Assists in healthy liver functioning
•Supports cholesterol management
•Prevents and reduces food allergies Prevents the formation and growth of colon cancer, if used
regularly. Market estimates
As many are today becoming health and calorie conscious, the market is growing. Amul estimates
that it would expand the market by increasing customer base. Essentially, it would not only convert
nonconsumers of ice cream into eaters but also increase frequency of ice cream eating. It expects to
get 10 per cent additional growth only through the probiotic range. Since the company is the first to
introduce the innovation, developed in-house, it expects to build the market and capture the entire
market for probiotic ice cream.
Amul Sugar Free (Probiotic Diabetic Delight)
For diabetics, consuming ice cream had remained a dream. Amul is all set to change that with the
launch of India’s first specially created Sugar Free Low Fat Diabetic Delight. In Amul Sugar Free
Probiotic Diabetic Delight frozen dessert, sugar has been replaced with zero calorie and low calorie
sweeteners called fructooligo- saccharides. Fructo-oligo-saccharides (FOS) are soluble dietary fibres
that improve the mineral absorption and bone health in addition to increasing the disease-fighting
ability of the body. Digestive enzymes sparingly digest these sweeteners in the stomach or small
.
Amul Probiotic wellness ice cream :
• Improves immunity
• Improves digestion
• Prevent gut infection
• Manages traveler’s diarrhea
Available in so many flavours packed in international packings:
8

9. Amul Probiotic wellness ice cream is available in : 125ml/500ml+500ml free and 1.25 litrs in 5
flavours : Vanilla with chocolate sauce/Starwberry/chocolate/shahi Anjir and fresh litchi price
ranging from Rs.15(125ml) to 110(1.25litrs).
RESEARCH BRIEF
9

10. AMUL
40%
HUL
30%
VADILAL
20%
OTHERS
10%
MARKETSHARE
Among the major players in this industry AMUL has a market share of around 40%,.
Hindustan Unilever Ltd with an estimated market share of 30% represented mainly by
Kwality Walls brand and lastly Vadilal is the player in the national market with 20% of the
market share and 10% of the others brand like Mother Dairy, Arun Dairy and some local
brands.
Indian Ice Cream Market
Industry Snapshot
· Market Size - 800 Crores
· Ice Cream market is growing at 10 to 12%
· Ice creams traditionally are a low volume business
Players
Ice-cream
Introduction
The ice cream market growth picked up after de-reservation of the sector in 1997. Of the total size of
Rs 15-16bn, around 30-32% is in the hands of organized sector valued at Rs 4.9bn, rest all is with
the unorganized sector.
Production area
In rural areas, kulfis / ice creams made by small / cottage industry are popular. The market for
organized sector is restricted to large metropolitan cities. In small towns and villages, there are
thousands of small players who produce ice- creams / kulfis in their home backyard and cater to the
10

11. local market. Almost 40% of the ice creams sold in the country are consumed in the western region
with Mumbai being the main market, followed by 30% in the north and 20% in the south.
Growth promotional activities
The Indian government adopted the policy of liberalization regarding the ice cream industry also and
it is since then that this sector has shown an annual growth ranging from 15- 20% per annum for last
1- 2 year. Presently in 1999- 00 it is estimated at worth of Rs15- 16bn. This growth rate is expected
to continue for another next 2- 3 years because of lower base.
Types
Indian Ice Cream market can be segmented in three different ways, namely on the basis of flavors;
on the basis of stock keeping units / packaging and on the basis of consumer segments. On the basis
of flavors the market today has a number of flavors like vanilla, strawberry, chocolate, mango,
butterscotch a number of fruit flavours; dry fruit flavors traditional flavors like Kesar- Pista, Kaju-
Draksh etc.
The market is totally dominated by Vanilla, Strawberry and chocolate, which together account for
more than 70% of the market followed by butterscotch and other fruit flavors.
1. Amul - Market Leader with share of 40%
2. HUL - Kwality Walls - 2nd biggest player
3. Mother Diary
4. Arun - Chennai Based Hatsun Agro Product
5. Metro Daily - Kolkata based
6. Aavin - Tamil Nadu based
Recent Happenings
1. HUL's Moo (Nutritional Ice Cream) - targeted at Kids
2. As Mother Dairy has competency cold chain distribution as they have Safal brand (frozen peas,
corn, juices and mixed vegetables) under their portfolio, they have expanded from Delhi to
Bangalore, Hyderabad, Chennai, Punjab, Rajasthan, UP & Uttaranchal. Due to this and other brand
11

12. extensions in the pipeline, Mother Diary expects their turnover by 20% this year over their present
size of Rs. 2800 Rs. Cr.
3. Aavin, the cooperative sector milk and dairy products marketer in Tamil Nadu, has launched a
low sugar variant of ice creams in the market. According to an official press release, the ice cream
`without added sugar' is ideal for diabetics and safe for children and mothers-to-be. This variant has
just 80 calories and has 16 mg of sweetener against 8,000 mg of sugar in the traditional ice creams.
The ice cream conforms to the US and domestic food regulations,
the release said
4. GCMMF launched its pro-biotic ice creams that have live beneficial culture that confer
beneficial health effects such as improving immunity and digestion and strengthening bones. It also
introduced a sugar-free ice cream range and is planning a Web site on ice creams. There two ranges
are - Amul Prolife and Amul Sugar free. According to Mr. R.S. Sodhi, GM Marketing, Amul,
Amul hopes to build the pro-biotic range into a Rs 100- crore brand within the next two-
three years. While Amul had earlier tested this market segment through the launch of an isabgol-
enriched ice cream, this is company's first full-fledged attempt at capturing a good share of the pro-
biotic enriched foods market in India. Both the brands are available in 125 ml (Rs 15), 500 ml and
1.25 litre (Rs 120) packs in five flavours, vanilla with chocolate sauce, strawberry, chocolate, shahi
anjir and fresh litchi. On the retail front, it intends to hike its Amul parlours from 600 to 10,000 by
2010
5. Arun Ice Creams, the ice cream brand from Hatsun Agro Product Ltd, is launching a new range of
ice cream outlets, Arun Ice Creams Unlimited. Hatsun Agro, which is the largest private dairy in
India, plans to make available its range of dairy products at the conventional Arun ice cream outlets
operated through franchisees. This network will also be expanded. The new range of outlets will sell
ice cream by the scoop, `aggressively priced' at Rs 20 a scoop of 100 gm, Mr Chandramogan said. A
feature of these parlours will be the wide selection of flavours, over 25 flavours with five new
substituted for the existing ones each month to ensure more variety. The company is investing over
Rs 15 lakh in each of these outlets.
Few Brands/ Target Consumers
1. Youth Centric - Chills
2. Kids - Moo
3. Teenagers - Cornett
12

13. 4. Health Conscious - Amul Sugar free & ProLife
This summer mother diary targeted children with the baseline — `Jagaye Andar ka Bandar' while it
is luring adults with the message `Give In'.
Interesting piece of information: Hawking is not allowed in Mumbai which makes 1/3rd of business
for HLL. Rest is contributed by retail outlets
Future of Ice Cream Market in India
Ice Cream market will expand with increase in number of malls - HUL has been increasing their ice
cream outlets - Swirl. Few years consumers use to go out for walk after dinner and use to buy ice
creams from hawkers. But now consumer who often visit malls for entertainment
prefer to buy ice creams during different times of the day as it is visible upfront and feel like
spending Rs. 50 for that tasty chocolate swirl with cake and nuts. As marketers are understanding the
different needs of consumers, be it health conscious people, kids, youngsters, young etc, and coming
up with products specific for them... with portfolio of flavors, consumer today has plethora of
options at hand to choose from and therefore high probability of buying one more scoop of ice
cream. Also with increasing wallet size and innovative modern retail formats, it has definately given
a philip to the ice cream industry in India.
MARKETING RESEARCH
Marketing research plays an important role in the process of marketing. Starting with market
component of the total marketing talks. It helps the firm to acquire a better understanding of the
consumers, the competition and the marketing environment.
13

14. DEFINITION
“Marketing research is a systematic gathering, recording and analysis marketing problem to facilitate
decision making.”
- Coundiff & Still.
“Marketing research is a systematic problem analysis, model building and fact finding for the
purpose of important decision making and control in the marketing of goods and services.
- Phillip Kotler.
MAIN STEPS INVOLVED IN MARKETING RESEARCH
Defining the Marketing Problem to be tackled and identifying the market research problem involved
in the task.
(1) Define the problem and its objectives.
(2) Identify the problem.
(3) Determine the information needed.
(4) Determine the sources of information.
(5) Decide research methods.
(6) Tabulate, Analyze and interpret the data.
(7) Prepare research report.
(8) Follow-up the study.
(1) Define the problem and its objectives :- This includes an effective job in planning
and designing a research project that will provide the needed information. It also includes
the establishment of a general framework of major marketing elements such as the industry
elements, competitive elements, marketing elements and company elements.
(2) Identify the problem :- Identifying the problem involves getting acquainted with the
company, its business, its products and market environment, advertising by means of
library consultation and extensive interviewing of company’s officials.
(3) Determining the specific Information needed :- In general the producer, the
manufacturer, the wholesaler and the retailer try to find out four things namely :-
14

15. (1) What to sell
(2) When to sell
(3) Where to sell
(4) How to sell
(4) Determine the sources of information :-
(a) Primary Data :- Primary datas are those which are gathered specially for the project at hand,
directly – e.g. through questionnaires & interviews. Primary data sources include company
salesman, middleman, consumers, buyers, trade association’s executives & other
businessman & even competitors.
(b) Secondary Data :- These are generally published sources, which have been collected
originally for some other purpose. Source are internal company records, government
publication, reports & publication, reports & journals, trade, professional and business
associations publications & reports.
(4) Decide Research methods for collecting data :- If it is found that the secondary data cannot
be of much use, collection primary data become necessary. Three widely used methods of
gathering primary data are
A) Survey
B) Observation
C) Experimentation
A) Survey Method :- In this method, information gathered directly from individual
respondents,either through personal interviews or through mail questionnaires or telephone
interviews.
B) Observation Method :- The research data are gathered through observing and recording their
actions in a marketing situation. This technique is highly accurate. It is rather an expensive
technique.
C) Experimental Method :- This method involves carrying out a small scale trial solution to a
problem, while at the same time, attempting to control all factors relevant to the problem. The
main assumption here is that the test conditions are essentially the same as those that will be
15

16. encountered later when conclusions derived from the experiment are applied to a broader
marketing area.
D) The Panel Research :- In this technique the same group of respondents is contacted for more
then one occasion; and the information obtained to find out if there has been any in their taste
demand or they want any special quality, color, size, packing in the product.
a) Preparation of questionnaire
b) Presetting of questionnaire
c) Planning of the sample
(5) Tabulate, Analysis and Interpret the Data :-
The report must give/contain the following information:-
a) The title of research
b) The name of the organization for which it has been Conducted
c) The objectives of research
d) The methodology used
e) Organization and the planning of the report
f) A table of contents along with charts and diagrams used in the reports
g) The main report containing the findings
h) Conclusion arrived at end recommendations suggested
i) Appendices (containing questionnaire / forms used sample design, instructions.)
2. RESEARCH OBJECTIVES & Related sub objectives
 To know awareness of people towards Amul Prolife & Sugar free Icecream .
 To know in which segment ice cream are mostly like/preferred.
 To know which advertisement tool is mostly preferred by people.
16

17.  To know the preference of Amul Sugar free ice cream with comparison to other
competitive brands.
 To know the factors which affects consumer’s buying behaviour to purchase prolife & sugar
free icecream.
 Create awareness about the Probiotic icecream
 To collect the detailed data by filling up the questionnaire from the APO’S/A class outlets or
parlors
 To collect the detailed data with respect to AMUL Outlets.
 To collect information about the AMUL Prolife & Sugar free ice cream by different APO’S
& A class outlets
 To collect detailed information about the price, supply or any required improvement towards
the AMUL Prolife & Sugar free ice cream.
 To give suggestion provided by the outlets to the company for improvement of AMUL
Prolife & Sugar free ice cream/Products
.
INTRODUCTION OF VADILAL
The first ice-cream factory in the world was set up in the year 1851 by a vocational chief
named Jacob Fussily. The first hot Fudge Sundae was served at Browns in Hollywood.
Ice cream cone were an accidental innovation. During a St.Louis Exposition in 1904, when
an Ice cream vendor ran out of bowls, his pastry-maker neighbor rolled in it crisp wafer. They called
17

18. this ‘Cornupopias’, and people instantly took to it. The duo might have not imagined that they were
in fact pioneering a product sub-gern, thought.
In India, one of the earliest Ice cream related anecdotes goes thus: a traveler once presented
Emperor Amber crude of Ice cream (fruit juice sprinkled on Ice). The emperor liked it so much; he
ordered that he be served the same every morning.
It is said that gagantic blog of Ice had to be extricated from Kashmir and carted across the
land for over a month, to Delhi. By the time it reached Delhi, it would melt down to small cup-full,
and emperor could relish his cup of Ice Cream every morning.
COMPANY PROFILE
(A) Brand Name : Vadilal Industries Limited
18

19. (B) Type of organization : Public Ltd.
(C) Establishment Year : 1970
(D) Office Address : Vadilal House,
Shrimali Society,
Nr. Navrangpura Rly. Crossing,
Navrangpura, Ahmedabad – 380 009
(E) Factory Address : Dudheshwar Road,
Ahmedabad (Gujarat)
(F) Market Share : 65%
(G) Parlors & Restaurant : 80
(H) Vadilal Ice-Cream : Village Pundhra,
Tal. Mansa,
Dist. Gandhinagar (Gujarat)
(I) Competitor : Amul ,
Quality walls.
(J) No. of Employees : 500
(K) Promoter : RAMCHANDRA R. GANDHI
(L) M.D : RAJESH R. GANDHI
DEVANSHU L. GANDHI
(M) Web Site : www.vadilalgroup.com
HISTORY OF ORGANIZATION
19

20. Today, the name Vadilal conjures images of lip-smacking ice cream in a whole gamut of
flavours. Vadilal spells quality, availability, variety and state-of-the-art machinery and equipment. It
has, however, been a long journey for the group, which traces its origins way back to 1907, when a
certain unassuming gentleman, by the name of Vadilal Gandhi, the great-grand father of Virendra R
Gandhi, Rajesh R Gandhi and Devanshu L Gandhi, started a soda fountain. He passed on the
business to his son, Ranchod Lal, who ran a one-man show, and, with a hand cranked machine,
started a small retail outlet in 1926. Eventually, Ranchod Lal's sons, Ramchandra and Lakshman,
inherited the business and they were instrumental in giving a new direction to the company. The duo
imparted a new vision to the venture and infused a spirit of calculated risk-taking into the company.
As a result, by the 1970s, the Vadilal Company had already evolved into a modern corporate entity.
"In 1972-73, the company had 8-10 outlets in Ahmedabad. Gradually, we moved from the
city to other parts of Gujarat. By 1985, the company moved towards neighbouring states like
Rajasthan and Madhya Pradesh. But the expansion was undertaken very methodically and we spent
five to six years in spreading our business and then consolidating it" says Shri Ramchandrabhai
Gandhi (Chairman).
MISSION STATEMENT
“To provide products and services at an affordable price without
compromising the quality,” says Shri Ramchandrabhai Gandhi
20

21. VISION STATEMENT
“To become an Indian MNC (Multi National Company) in frozen foods”.
ACHIVEMENTS
FORM OF ORGANISATION
There are different types of business organization. Their names and meaning is as follow:
1. SOLE PROPRIETORSHIP
Sole proprietorship is also known as ‘one man businesses. It is a type of business unit where only
one person is responsible for providing the capital, for bearing the risk of the enterprise and for the
management of the business.
21

22. ORGINIZATIONA
L
CHART
2. PARTNERSHIP
According to the partnership act 1932 partnership is a relation between person or two who have
agreed to share the profit of the business carried on by all or any of them acting for all.
3. JOINT STOCK COMPANY
It is a company which is controlled and managed by both private and public sector unit.
Sometimes the private sector unit manages the public sector unit for improving the affiance of the
PUS.
4. CO – OPERATIVE SOCIETY
Co-operative society is a voluntary association of individuals. It is formed for the promotion of
economic interest of its members in accordance with co-operative principles
And at last we can know form all the form of organization that Vadilal is a JOINT STOCK
company.
ORGINIZATIONAL STRUCTURE
22

23. QUALITY ASSURANCE
Pundhra Plant is ISO: 9001:2000 and HACCP Certified. The certification of this plant has
been carried out by BVQI under the latest regulations of food safety system, September 2002.
23
G.M. FINANCEG.M. PERSONNELG.M. G.M.
MANAGERASST. DY. MANAGERG.M. WORKS
EXECUTIVES EXECUTIVEASST. MANAGERASST. MANAGER
OFFICER, A/C,
TYPIST
SUPERVISOR EXECUTIVEOFFICE
LABOUR
CHAIRMAN
M.D (Managing Director)
CO-ORDINATOR
MANAGER
MATERIAL
MANAGER
Q&A and R&D

24. BVQI is a wholly owned subsidiary of Bureau VERITAS, a France-based multinational
organization.
The plant has recently received the Export Inspection Council of India, Ministry of
Commerce and Industry, Government of India certification for exports which in itself is a
benchmark for hygiene and quality.
“We shall achive customer satisfaction by establishing and sustaining
an effective quality management system”
QUALITY OBJECTIVE
• Ensure consistency in quality of product and services.
• Improve upon individual and then perform by means of continuous training.
NEED OF FINANCE
In the business unit need of finance arises due to following reason.
For the purpose of expansion.
For the purpose of establishment.
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25. For the purpose of renovation.
For the purpose of diversification
RESERVES AND SURPLUS
Cash is the most important current assets for the operating of the business run on continuous
basis for the smooth running of the company. There should be sufficient cash neither more is cr.
Shortage will intercept the firm manufacturing operations while exclusive cash supply remain ideal.
Therefore the cash and bank balance of the company are maintained at optimum level for this they
can use the system of investment in reserve also. Cash is needed for the day to day expenses like
purchase of raw material and giving salaries to the worker.
TURN OVER OF THE COMPANY
• Company has achieved sales turnover of Rs. 13,604.72 lacs as compared to sales turnover of
Rs. 11,888.88 lacs achieved during the previous year ended on 31st March, 2007.
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27. 27

28. Cash Flow of Vadilal Enterprises
Particulars
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
12 mths 12 mths 12 mths 12 mths 12 mths
Net Profit Before
Tax 0.08 1.36 1.27 1.27 0.51
Net Cash From
Operating Activities 11.16 6.21 -0.1 -0.13 3.31
Net Cash (used
in)/from
-8.53 -7.34 -3.87 1.11 -3.31Investing Activities
Net Cash (used
in)/from Financing
Activities 0.59 1.16 3.73 -1.36 -0.23
Net
(decrease)/increase
In Cash and Cash
Equivalents 3.21 0.03 -0.24 -0.39 -0.24
Opening Cash &
Cash Equivalents 0.35 0.31 0.56 0.89 0.98
Closing Cash & Cash
Equivalents 3.56 0.35 0.31 0.51 0.74
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29. DISTRIBUTION CHANNEL
• COMPETATION :
The company operates in an extremely competitive market and some of its brands compete
with the brand of large multinational companies.
In past company was company was facing Amul especially on pricing front. But now
company is successfully overcome from the competition further local and regional brand are
increasing day by day which is also eating away some of the market. The company faces the rest of
reach market share on account of competition through advertising trade promotion, price
competition and other competition measure.
Salesmen
Retailer
Dealer
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Company
Distributor
Customer

30. This risk factor is common to all companies in the industry and not specific to Vadilal owe a
period of time Vadilal has fought successfully fought against many brands.
• BRANDING :
Branding is the process of assigning a distinctive brand name or symbol to a product in order
to differentiate it from the competitive product. Branded foods enjoy a wider market.
Vadilal Enterprise Limited has strong consumer brand awareness. The company chose
“Vadilal” as a brand for dedicating the owner father Mr.Ramchandra Vadilal Gandhi. Vadilal
Enterprise Limited has launched a new brand “Vadilal Surbhi” for its subsidiary product i.e. milk. It
also has another brand name “Vadilal Lite”for the product, which were useful for diabeties & heart
Patient.
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31. CONCLUSION
As we know that Amul is very big organization and market leader in dairy products. It has
maximum market share in Milk, Butter and Cheese, which are its main/core products. As we know
Amul is a co-operative organisaion but icecream industry is a profitable industry we can’t ignore it.
With the help of research, company can find out its week points in Prolife icecream product and can
increase its market share through rectify mistakes. People have believed in Amul’s product and
they will accept its icecream also if effective actions were taken.
The industrial visit to Vadilal industry was a wonder full visit from our college. My visit
was about how an organization is run successfully. The visit was highly educational and helped one
to give me a depth understanding of marketing and finance management cared out of Vadilal. I came
to know the process used for manufacturing of Ice-Cream and different types of problem incurred in
it. I understood the difficulties that is faced by the management of modern company and also studies
the way they save the difficulties and problems.
Vadilal is a wonderful company. It is developed company with the registered office as
well as factory at Gandhinagar (Gujarat). Vadilal has capereted the market of the ice-cream. It will
be leader in ice-cream after few years if it continues to process in this way as it is doing now. We
can tell that industry is an ideal industry and after eating its ice-cream anybody can tell that is
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32. BIBLIGROPHY
WEBSITES:
• www.vadilalgroup.com
• www.amul.com
• www.amuldairy.com
• www.google.com
• www.marketresearch.com
• www.dairy.com
• Research Methodology. ( Harper W.Boyd, C. R. Kothari )
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